2023 Plant-based Food Report: The Evolution of Dietary Preferences and the Quest for Food Additives Innovation

In recent years, the global plant-based market has witnessed a surge, driven by flexitarian eaters seeking meat and dairy alternatives that mimic the taste, texture, and appearance of traditional animal products. This report delves into the factors influencing consumer demand, barriers to adoption, and future avenues for innovative developments in the plant-based realm.

While the popularity of plant-based dairy alternatives has skyrocketed, creating authentic dairy-like substitutes using plant-based ingredients remains a complex challenge for developers. This report explores how sensory analysis can facilitate new product development, identifies promising plant-based ingredients, and investigates the potential game-changing impact of precision fermentation on this category.

Despite substantial advancements in the taste, texture, and appearance of plant-based alternatives to meat, fish, and seafood, many products still fall short in blind taste tests. Simultaneously, the clean label movement, rallying against perceived "ultra-processed" products, poses a challenge. This report examines strategies for brands and manufacturers to overcome these hurdles and successfully navigate the plant-based category.

As consumers globally pivot towards plant-based diets for sustainability, health, and ethical reasons, the shift is palpable. According to FMCG Gurus, a growing proportion of people are adopting diets centered around minimizing or moderating animal produce, with plant-based food sales in the US surpassing $7.4 billion USD in 2021—a growth rate three times higher than other grocery store foods.

US households are increasingly embracing plant-based products, with plant-based milks leading the charge, representing 16% of the entire milk category. Plant-based meat, while still a small segment, has flat growth, making up 1.4% of the total US meat category. Despite the challenges, the sustained rise in plant-based market share underscores the enduring nature of this dietary shift.

Across the Atlantic, UK data from the Agriculture and Horticulture Development Board reveals that an additional 1.2 million consumers are now opting for meat substitutes weekly, constituting approximately 15% of the population. However, Susie Stannard of the AHDB warns of decelerating growth rates, cautioning that the historical hype around these products may not align with stable figures over recent years.

While overall growth in plant-based consumption remains steady, a standout demographic is that of flexitarians, constituting around 16% of all consumers. This group, seeking to reduce meat consumption, is a focal point for manufacturers and brand owners. As plant-based new product development concentrates on replicating popular dishes like pizzas and burgers, there's a move away from perceived worthiness towards more indulgent offerings.

The drivers for choosing plant-based meals over meat-based ones include the speed of preparation, cost considerations, and health benefits. Consumers are increasingly turning to plant-based options for the simplicity of preparation, with plant-based meals averaging a quick 10-minute preparation time compared to the 29 minutes for meat-based counterparts.

Health considerations are a primary driver for choosing plant-based alternatives, with nearly half of consumers opting for dairy alternatives due to health concerns. Despite this, there is a call for more diversity in meat replacement markets, with a lack of availability of products such as chicken and seafood.

Consumers emphasize that taste is paramount, with 82% stating that plant-based products should taste the same as real meat, 75% emphasizing the importance of identical texture, and an equal percentage desiring a similar appearance. Mike Hughes of FMCG Gurus suggests that there's room for improvement in the texture and appearance of meat substitutes to enhance consumer satisfaction.

In the ever-expanding realm of plant-based dairy alternatives, product developers are exploring a diverse array of ingredients, ranging from soy, oat, coconut, almond, and pea to more unconventional choices like rice, spelt, sesame, quinoa, hazelnut, and beyond. Recent launches showcase the industry's commitment to pushing boundaries, with products like Dug's potato protein-based drinking milk in the UK, Planti's broad bean-derived plant-based milk in Sweden, and Lavva's vegan yogurt crafted from pili nuts in the US.

While current plant-based offerings have come a long way from their early iterations, achieving true parity with dairy in terms of taste, texture, and appearance remains a challenge. To address this, the industry is actively developing novel ingredients that can replicate the sensory attributes of dairy fat and protein in plant-based applications.

Esterified Propoxylated Glycerol (EPG):
Epogee, a US scaleup, has introduced a functional, reduced-calorie vegan fat by restructuring fatty acids in plant oils. The resulting esterified propoxylated glycerol (EPG) offers a unique structure that mimics the mouthfeel and flavor of fat without releasing calories and saturated fats during metabolism. Despite being developed for plant-based applications, traditional dairy brands, such as N!CK's in Sweden, have adopted EPG to enhance creaminess while reducing calorie content in products like cow's milk ice cream.

Oleaginous Yeast:
Swiss startup Cultivated Biosciences employs biomass fermentation to produce an oleaginous yeast with fat accumulation resembling dairy cream. Extracted and used as an ingredient, this yeast-based fat, still awaiting novel food approval in Europe, boasts a cholesterol-free, lactose-free composition with properties mirroring dairy cream. With a slight umami flavor, it aims to find a place in savory applications like plant-based cream cheese and sour cream alternatives.

Fusarium Filamentous Fungi:
Nature's Fynd, a US startup, crafts dairy-free cream cheese using a fungus-based, high-fiber, and high-protein ingredient derived from the Fusarium strain flavolapis. Grown through biomass fermentation with a patented liquid air surface interface technique, the ingredient offers 50% protein, all 20 amino acids, 30% fiber (including beta-glucans), and is low in fat, cholesterol-free. Already on US shelves, this ingredient represents a leap in plant-based protein options.

Chlorella Vulgaris:
Singaporean startup Sophie's Bionutrients cultivates Chlorella vulgaris microalgae in urban bioreactors, yielding a natural, high-protein flour suitable for various applications. Collaboration with the Danish Technological Institute resulted in a lactose-free, vegan ice cream mimicking dairy texture using chlorella. The quick harvest cycle of three days enhances sustainability, positioning microalgae as a versatile ingredient for the future.

Seed Oleosomes:
Time-Travelling Milkman, a Wageningen University spin-off, is developing a creamy, seed-based fat to emulate the creaminess of milk fat. Utilizing oleosomes—naturally occurring fat droplets inside plant seeds—this ingredient preserves the seeds' natural structure during extraction, employing a solvent-free, water-based manufacturing process. The focus on fat content acknowledges its importance in achieving a successful transition to plant-based alternatives.

Amidst the surge in plant-based options, the industry faces challenges related to the perception of ultra-processed foods. While the health halo around 'plant-based' remains, consumer concerns over the health impacts of some processed plant-based products are rising. Brands must address these apprehensions by prioritizing familiarity and trust in ingredients, providing streamlined lists with recognizable components. The shift towards whole-cut meat replacement solutions reflects a changing landscape, requiring the industry to deliver on par with traditional meat offerings.

Intriguingly, the true drivers of changing consumption habits may not align with popular narratives. A 2020 AHDB study found that factors such as health, sustainability, and animal welfare were not major drivers of meat reduction. Surprisingly, the lack of inspiration and innovation in the meat aisle emerged as the primary catalyst for dietary changes.

Lastly, consumer preferences lean towards products labeled as "plant-based" rather than "vegan-friendly," emphasizing the importance of effective branding in influencing consumer choices. The term 'meatless' is also gaining traction over 'vegan' or 'plant-based,' as revealed by data from the behavioral insights platform Veylinx. This shift in terminology showcases the evolving landscape of consumer preferences in the plant-based food market.